Show Transcript
I spent $6 million on a clothing brand that was hot in a certain area, but I didn't learn how to operate it. And I blew $6 million because I thought that, cuz I was in clothing, men's clothing, I could do women's clothing just as easily. Well, I was wrong. Wrong, and $6 million later. It was my biggest mistake. [MUSIC] When you're broke, you basically take affordable steps. You don't go out there and bet the whole farm on everything, and then all of a sudden realize that [SOUND] you Skip steps two through nine and now you're at ten and you're broke. You do step one, you do step two, and until you get off of step two and you're successful, you're gonna keep getting knocked down, you don't move to step number three. So it really keeps you focused about those things. A couple common traits amongst entrepreneurs. They see the results and then they come back and they say, Okay, how to improve on this? And the result sometimes is the door slams in your face, actually most of the times It's a door slammed in your face but once you realise why the door is being slammed in your face you'll realise why the door will open. Don't get me wrong, you may just have a bad idea, and the door keeps getting slammed in your face and you run out of your small amount of capital but You at least will know that you didn't spend every single thing you have, and you can recover from it. So a brand is a brand. I always say, you know, if you want to put yourself out as a brand you need to understand what your brand stands for. Can you put yourself in two to five words? Describe yourself in two to five words. Apple, think different, Nike, just do it, White Castle, what you crave. And they don't always have to be beautiful Sexy words. Old Dirty Bastard was Old Dirty Bastard and he stayed true to it. My first rap group that I really loved? The Fat Boys. They were fat boys. So you have to stay true to your brand. [MUSIC] The best way to get family and friends to invest in your business honestly is you go out and you prove the concept yourself first. When you don't have any money And you're operating with people that are people that believe in what you're doing. If they're not making money and they're rolling with you they're really there because they believe in what you're doing. Then you let them believe that you're going to take they're money and you're gonna do the right thing with it. If you're just sitting there and you go I just need the money to get it started, no. Take your own money dig in our couch. Put it maybe on your credit cards. Go sell that plasma T.V. you have. Stop going out to dinner and take your frankfurters and cook in a pot and eat frankfurters for a month. And show them you're willing to bust your **** and then they gonna wanna be a part of your movement. Prove it before you go and ask them for their money. [MUSIC]

'Shark Tank' Star Daymond John Talks the Power of Being Broke, Smart Finances and Entrepreneurship

FUBU creator and Shark Tank judge Daymond John dishes on the key to being an entrepreneur, being smart with money and how to create a brand.